TAIPEI (The China Post) – The Second Session of the Thirteenth National People’s Congress on March 15 passed the “Foreign Investment Law” which will come into effect on Jan. 1, 2020.
Asked about the consequences of the new regulation on investment from Hong Kong, Macao, and Taiwan, Zhang Zhijun, president of the Association for Relations Across the Taiwan Straits (ARATS) said it is considered “domestic investment,” meaning that the new law won’t affect or limit the rights of Taiwan investors.
Still, such investment shouldn’t entirely be defined as “domestic investment” but as “special domestic investment” which also follows regulations regarding foreign investment.
Regarding the impact of the new “Foreign Investment Law,” Tsai Shih-ming, vice president of the Shanghai Taiwan Sibling Investment Enterprise Association and the chief partner of Bourne Law Firm, pointed out that there were many disputes between Taiwan businessmen and local enterprises prior to the introduction of this legislation.
Many investors, therefore, registered their companies as wholly foreign-owned. Now that the “Foreign Investment Law” is passed, cooperation projects such as joint ventures will become more flexible. Taiwan businessmen are also optimistic about other policies regarding technology protection and investment promotion.